Navigator Holdings Ltd. Third Quarter 2023 Results (Unaudited)
- The company reports a significant increase in operating revenue and net income for Q3 2023, as well as a record Adjusted EBITDA, indicating strong financial performance.
- The investment in Azane Fuel Solutions demonstrates the company's commitment to expanding its portfolio and investing in environmentally friendly technologies.
- The declaration of a cash dividend and share repurchase plan reflects the company's confidence in its financial position and its commitment to returning value to shareholders.
- None.
LONDON, Nov. 13, 2023 (GLOBE NEWSWIRE) --
Highlights
- On November 13, 2023, the Board declared a cash dividend of
$0.05 per share of the common stock of Navigator Holdings Ltd. (the "Company", “Navigator”, "we", "our" and "us") (NYSE: NVGS), for the quarter ended September 30, 2023 (the “Dividend”). The Dividend will be payable on December 21, 2023, to all shareholders of record as of the close of business New York time on December 7, 2023 which would have equated to a quarterly dividend payment of$3.7 million . - As part of the Capital Return Policy for the quarter ended September 30, 2023, Navigator expects to repurchase approximately
$1.1 million of the Company’s common stock (the “Share Repurchases”) between November 16, 2023 and December 31, 2023, subject to operating needs, market conditions and other circumstances, such that the Dividend and Share Repurchases together equal25% of net income for the quarter ended September 30, 2023. - The company reported operating revenue of
$137.8 million for the three months ended September 30, 2023, compared to$106.8 million for the three months ended September 30, 2022. - Net Income attributable to stockholders' of Navigator Holdings Ltd. was
$19.1 million for the three months ended September 30, 2023, compared to$2.4 million for the three months ended September 30, 2022. - Earnings per share was
$0.26 for the three months ended September 30, 2023, compared to$0.03 per share for the three months ended September 30, 2022. - Adjusted Earnings per share, to exclude unrealized gains or losses on non-designated derivative instruments was
$0.27 for the three months ended September 30, 2023, compared to a loss of$0.07 for the three months ended September 30, 2022. - Adjusted EBITDA(1) was a record since the Company's IPO of
$72.2 million for the three months ended September 30, 2023, compared to$41.5 million for the three months ended September 30, 2022. - Fleet utilization increased to
93.4% for the three months ended September 30, 2023, compared to84.9% for the three months ended September 30, 2022. - Average daily time charter equivalent ("TCE") was
$26,278 for the three months ended September 30, 2023, compared to$22,022 for the three months ended September 30, 2022. - The Ethylene Export Terminal had a throughput during the third quarter of 2023 totaling 249,857 metric tons, compared to 189,140 metric tons during the third quarter of 2022.
- In September 2023, we purchased an aggregate of
$9.0 million of the 2020 Bonds in the open market using cash on hand. These purchased 2020 Bonds have not been canceled or redeemed and the Company intends to hold the bonds to maturity. - On October 25, 2023 the Company announced a new investment alongside Yara Growth Ventures to acquire a
14.5% interest in Azane Fuel Solutions for 2.7 million EUR (approximately$3 million ). The first green ammonia bunkering units are scheduled to be delivered in 2025 enabling low carbon fuel offering to shipowners.
Ethylene Export Terminal
The Ethylene Export Terminal had a throughput during the third quarter of 2023 totaling 249,857 metric tons, compared to 189,140 metric tons during the third quarter of 2022.
We, together with Enterprise Products Partners L.P, our joint venture partner, have agreed to the Terminal Expansion Project, which is expected to increase the export capacity from approximately one million tons per year to at least 1.55 million tons. Long lead items have already been ordered and construction, which is expected to be completed in the fourth quarter of 2024, has commenced. The total capital contributions required from us to the Export Terminal Joint Venture for the Terminal Expansion Project are expected to be approximately
Azane Fuel Solutions Ammonia Bunkering
On October 25, 2023 the Company , together with Yara Growth Ventures, announced that each of them had successfully acquired a
Subject to customary conditions, Azane intends to build the world’s first ammonia bunkering network, with Yara Clean Ammonia already pre-ordering 15 units from Azane. The investment made by Yara and Navigator is expected to enable Azane to begin construction of its first bunkering unit for ammonia supply in Norway, aiming to kickstart the transition to zero-carbon fuels for maritime transportation. Future value creation for Azane is expected to come through international expansion with its bunkering solutions and broadening of its offerings in ammonia fuel handling technology.
Purchase of 2020 Unsecured Bonds
On September 10, 2020, we issued senior unsecured bonds in an aggregate principal amount of
In September 2023, we purchased an aggregate of
Shipping Trends
Utilization across the fleet increased from
During the third quarter of 2023, the handysize 12-month market assessment for semi-refrigerated and fully refrigerated vessels increased by
During the third quarter of 2023 we experienced downward pressure on the ethylene arbitrage to Asia, this was balanced by increased activity on ethane movements, both transatlantic and to Asia, the latter being relatively long voyages and increasing the ton/mile. Guiding spot rates on the ethylene segment remained flat during the third quarter of 2023, however utilization and time charter assessments have improved.
We have 32 vessels engaged under time charters ("TC") and 15 vessels on spot and contracts of affreightment ("CoA"). Our midsize and fully refrigerated vessels are fully employed on time charters, our semi-refrigerated vessels are employed under time charters and voyage charters, and most of the Ethylene capable vessels are employed on the spot market. From October 31, 2023 to October 31, 2024, we currently expect to have
The fourth quarter of 2023 and the first quarter of 2024 are typically busier seasons for our fleet. We expect to see an increase in spot activity and an increase in time charter assessment as well as a continuation of the positive market developments we have recently seen.
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended September 30, 2023 and 2022:
| Three months ended | Nine months ended | |||||||||
| September 30, 2022 | September 30, 2023 | September 30, 2022 | September 30, 2023 | |||||||
| (in thousands) | (in thousands) | |||||||||
| Net income | $ | 2,859 | $ | 21,383 | $ | 44,623 | $ | 67,728 | ||
| Net interest expense | $ | 12,996 | $ | 16,421 | $ | 36,488 | $ | 44,896 | ||
| Income taxes | $ | 426 | $ | 1,120 | $ | 1,490 | $ | 4,269 | ||
| Depreciation and amortization | $ | 32,842 | $ | 32,353 | $ | 95,661 | $ | 96,374 | ||
| EBITDA(1) | $ | 49,123 | $ | 71,277 | $ | 178,262 | $ | 213,267 | ||
| Profit from sale of vessel | — | $ | — | 4,941 | ||||||
| Unrealized gain / (loss) on non-designated derivative instruments | $ | 2,541 | $ | (972 | ) | $ | 12,437 | $ | (2,028 | ) |
| Foreign currency exchange loss/(gain) on senior secured bonds | $ | 8,218 | — | $ | 12,558 | $ | — | |||
| Adjusted EBITDA(1) | $ | 41,465 | $ | 72,249 | $ | 153,267 | $ | 210,354 | ||
1EBITDA and Adjusted EBITDA are not measurements prepared in accordance with U.S. GAAP (non-GAAP financial measures). EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before profit on sale of vessel, unrealized gain or loss on non-designated derivative instruments and foreign currency exchange gain or loss on senior secured bonds.
Management believes that EBITDA and Adjusted EBITDA are useful to investors in evaluating the operating performance of the Company. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to consolidated net income, cash generated from operations or any measure prepared in accordance with U.S. GAAP, and our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies.
Navigator Holdings Ltd. Announces Date for the Release of Third Quarter 2023 Results and Zoom
Tomorrow, Tuesday, November 14, 2023 at 10:00 A.M. E.S.T., the Company’s management team will host a Zoom conference call and slide presentation to discuss the financial results.
Zoom Conference Call Details
Participants should register for the conference call and slide presentation through the following link:
https://us06web.zoom.us/webinar/register/WN_5Ka5sWGlTnSGNOlXRPq1Rg
Or join by phone:
United States: +1 929 205 6099
United Kingdom: +44 330 088 5830
For a full list of US and international numbers available, please click on the link below:
Webinar ID: 854 2757 9980
Passcode: 280346
The conference call and slide presentation will be available for replay on Navigator’s website www.navigatorgas.com under Key Dates and All Reports in the Investors Centre section.
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company’s website (www.navigatorgas.com). To listen to the live and archived audio file, visit our website www.navigatorgas.com and click on Key Dates under our Investors Centre page. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Navigator Gas
Navigator Holdings Ltd., which we sometimes refer to as “Navigator Gas”(NYSE: NVGS), is the owner and operator of the world’s largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation services of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas (“LPG”) and ammonia and owns a
Navigator Gas
Attention:
Investor Relations investorrelations@navigatorgas.com and randy.giveans@navigatorgas.com
Address: 333 Clay Street, Suite 2480, Houston, Texas, U.S.A. 77002
Tel: +1 713 373 6197 and +44 (0)20 7340 4850
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
Investor Relations / Media Advisors
Nicolas Bornozis / Paul Lampoutis
Capital Link – New York
Tel: +1-212-661-7566
Email: navigatorgas@capitallink.com
Unaudited Results of Operations for the Three months ended September 30, 2023 Compared to the Three months ended September 30, 2022
The following table compares our operating results for the three months ended September 30, 2022 and 2023:
| Three months ended September 30, 2022 | Three months ended September 30, 2023 | Percentage Change | |||||
| (in thousands, except Percentage Change) | |||||||
| Operating revenues | $ | 93,960 | $ | 125,541 | |||
| Operating revenues – Unigas Pool | 9,615 | 12,227 | |||||
| Operating revenues – Luna Pool collaborative arrangements | 3,238 | — | (100.0)% | ||||
| Total operating revenue | 106,813 | 137,768 | |||||
| Expenses, net: | |||||||
| Brokerage commission | 1,430 | 1,788 | |||||
| Voyage expenses | 20,208 | 20,561 | |||||
| Voyage expenses – Luna Pool collaborative arrangements | 3,643 | 19 | (99.5)% | ||||
| Vessel operating expenses | 38,663 | 39,565 | |||||
| Depreciation and amortization | 32,842 | 32,353 | (1.5)% | ||||
| General and administrative costs | 6,137 | 7,357 | |||||
| Profit from sale of vessel | — | — | - | ||||
| Other income | (60 | ) | — | ||||
| Total operating expenses | 102,863 | 101,643 | (1.2)% | ||||
| Operating Income | 3,950 | 36,125 | |||||
| Other income/(expense) | |||||||
| Foreign currency exchange gain on senior secured bond | 5,117 | — | (100.0)% | ||||
| Unrealized gain / (loss) on non-designated derivative instruments | 2,541 | (972 | ) | (138.3)% | |||
| Interest expense | (13,166 | ) | (18,189 | ) | |||
| Interest income | 170 | 1,768 | |||||
| (Loss) / Income before taxes and share of result of equity method investments | (1,388 | ) | 18,732 | (1449.6)% | |||
| Income taxes | (426 | ) | (1,120 | ) | |||
| Share of result of equity method investments | 4,673 | 3,771 | (19.3)% | ||||
| Net Income | 2,859 | 21,383 | |||||
| Net income attributable to non-controlling interest | (414 | ) | (2,270 | ) | |||
| Net Income attributable to stockholders' of Navigator Holdings Ltd. | $ | 2,445 | $ | 19,113 | |||
Operating Revenues. Operating revenues, net of address commissions, was
• an increase in operating revenues of approximately
• an increase in operating revenues of approximately
• an increase in operating revenues of approximately
• a increase in operating revenues of approximately
The following table presents selected operating data for the three months ended September 30, 2023, and 2022, which we believe are useful in understanding the basis for movement in our operating revenues.
| Three months ended September 30, 2022 | Three months ended September 30, 2023 | |||||
| * Fleet Data: | ||||||
| Weighted average number of vessels | 44.0 | 47.0 | ||||
| Ownership days | 4,048 | 4,324 | ||||
| Available days | 3,943 | 4,276 | ||||
| Earning days | 3,349 | 3,995 | ||||
| Fleet utilization | ||||||
| ** Average daily time charter equivalent rate | $ | 22,022 | $ | 26,278 | ||
* Fleet Data - Our nine owned smaller vessels in the independent commercially managed Unigas Pool and the vessels owned by Pacific Gas in our Luna Pool prior to their acquisition by the Navigator Greater Bay Joint Venture are not included in this data.
** Non-GAAP Financial Measure—Time charter equivalent: Time charter equivalent (“TCE”) is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues (excluding collaborative arrangements and revenues from the Unigas Pool), less any voyage expenses (excluding collaborative arrangements), by the number of earning days for the relevant period. TCE exclude the effects of the collaborative arrangements, as earning days and fleet utilization, on which TCE are based, are calculated for our owned vessels, and not the average of all pool vessels. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses. TCE is a shipping industry performance measure used primarily to compare period-to-period changes in a company’s performance despite changes in the mix of charter types (i.e., voyage charters, time charters and contracts of affreightment) under which the vessels may be employed between the periods. We include average daily TCE, as we believe it provides additional meaningful information in conjunction with net operating revenues because it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our calculation of TCE may not be comparable to that reported by other companies.
Reconciliation of Operating Revenues to TCE rate
The following table represents a reconciliation of operating revenues to TCE rate. Operating revenues are the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
| Three months ended September 30, 2022 | Three months ended September 30, 2023 | |||
| (in thousands, except earning days and average daily time charter equivalent rate) | ||||
| Fleet Data: | ||||
| *** Operating revenue | $ | 93,960 | $ | 125,541 |
| *** Voyage expenses | 20,208 | 20,561 | ||
| Operating revenue less voyage expenses | 73,752 | 104,980 | ||
| Earning days | 3,349 | 3,995 | ||
| Average daily time charter equivalent rate | $ | 22,022 | $ | 26,278 |
***Operating revenues and voyage expenses excluding collaborative arrangements and Unigas pool.
Operating Revenues – Unigas Pool. Operating revenues – Unigas Pool was
Operating Revenues – Luna Pool Collaborative Arrangements. Pool earnings are aggregated and then allocated (after deducting pool overheads and managers' fees) to the Pool Participants in accordance with the Pooling Agreement. Operating revenues - Luna Pool collaborative arrangements was $nil for the three months ended September 30, 2023, compared to
Brokerage Commissions. Brokerage commissions, which typically vary between
Voyage Expenses. Voyage expenses increased by
Voyage Expenses – Luna Pool Collaborative Arrangements. Voyage expenses – Luna Pool collaborative arrangements were $nil$— million for the three months ended September 30, 2023, compared to
Vessel Operating Expenses. Vessel operating expenses increased by
Depreciation and Amortization. Depreciation and amortization decreased by
General and Administrative Costs. General and administrative costs increased by
Non-operating Results
Foreign Currency Exchange Gain on Senior Secured Bonds. In December 2022, we redeemed all of the 600 million Norwegian Kroner then outstanding principal amount of our senior secured bonds (the “2018 Bonds”) and no exchange gains and losses were recorded for the three months ended September 30, 2023. A foreign currency exchange gain of
Foreign Currency Exchange Gain on Senior Secured Bonds. In December 2022, we redeemed all of the 600 million Norwegian Kroner then outstanding principal amount of our senior secured bonds (the “2018 Bonds”) and no exchange gains and losses were recorded for the three months ended September 30, 2023. A foreign currency exchange gain of
Unrealized Gains / (Losses) on Non-designated Derivative Instruments. The unrealized loss of
Interest Expense. Interest expense increased by
Income Taxes. Income taxes relate to taxes on our subsidiaries incorporated in the United States of America, as well as other countries around the world where we have subsidiaries. Income taxes increased to
Share of Result of Equity Method Investments. The share of the result of the Company’s
Non-Controlling Interest. We entered into a sale and leaseback arrangement in November 2019 with a wholly-owned special purpose vehicle of a financial institution (“Lessor SPV”). Although we do not hold any equity investments in this Lessor SPV, we have determined that we are the primary beneficiary of this entity and accordingly, we are required to consolidate this Variable Interest Entity ("VIE") into our financial results. The net income attributable to the Lessor SPV was
In September 2022, the Company entered into the Navigator Greater Bay Joint Venture to acquire five ethylene vessels, Navigator Luna, Navigator Solar, Navigator Castor, Navigator Equator and Navigator Vega. The joint venture is owned
Our Fleet
The following table sets forth our vessels as of November 13, 2023:
| Operating Vessel | Year Built | Vessel Size (cbm) | Employment Status | Current Cargo | Time Charter Expiration Date |
| Ethylene/ethane capable semi-refrigerated midsize | |||||
| Navigator Aurora | 2016 | 37,300 | Time Charter | Ethane | December 2026 |
| Navigator Eclipse | 2016 | 37,300 | Time Charter | Ethane | March 2026 |
| Navigator Nova | 2017 | 37,300 | Time Charter | Ethane | September 2026 |
| Navigator Prominence | 2017 | 37,300 | Time Charter | Ethane | March 2025 |
| Ethylene/ethane capable semi-refrigerated handysize | |||||
| Navigator Pluto* | 2000 | 22,085 | Drydock | — | — |
| Navigator Saturn* | 2000 | 22,085 | Time Charter | Ethylene | April 2024 |
| Navigator Venus* | 2000 | 22,085 | Spot Market | Ethylene | — |
| Navigator Atlas* | 2014 | 21,000 | Spot Market | Ethylene | — |
| Navigator Europa* | 2014 | 21,000 | Time Charter | Ethane | December 2023 |
| Navigator Oberon* | 2014 | 21,000 | Spot Market | Ethylene | — |
| Navigator Triton* | 2015 | 21,000 | Spot Market | Ethylene | — |
| Navigator Umbrio* | 2015 | 21,000 | Time Charter | Ethane | December 2023 |
| Navigator Luna* | 2018 | 17,000 | Spot Market | Ethylene | — |
| Navigator Solar* | 2018 | 17,000 | Spot Market | Ethylene | — |
| Navigator Castor* | 2019 | 22,000 | Spot Market | Ethylene | — |
| Navigator Equator* | 2019 | 22,000 | Spot Market | Ethylene | — |
| Navigator Vega* | 2019 | 22,000 | Spot Market | Ethylene | — |
| Ethylene/ethane capable semi-refrigerated smaller size | |||||
| Happy Condor** | 2008 | 9,000 | Unigas Pool | — | — |
| Happy Pelican** | 2012 | 6,800 | Unigas Pool | — | — |
| Happy Penguin** | 2013 | 6,800 | Unigas Pool | — | — |
| Happy Kestrel** | 2013 | 12,000 | Unigas Pool | — | — |
| Happy Osprey** | 2013 | 12,000 | Unigas Pool | — | — |
| Happy Peregrine** | 2014 | 12,000 | Unigas Pool | — | — |
| Happy Albatross** | 2015 | 12,000 | Unigas Pool | — | — |
| Happy Avocet** | 2017 | 12,000 | Unigas Pool | — | — |
| Semi-refrigerated handysize | |||||
| Navigator Aries | 2008 | 20,750 | Time Charter | LPG | January 2024 |
| Navigator Capricorn | 2008 | 20,750 | Time Charter | Butane | October 2024 |
| Navigator Gemini | 2009 | 20,750 | Spot Market | Butadiene | — |
| Navigator Pegasus | 2009 | 22,200 | Time Charter | Propylene | March 2024 |
| Navigator Phoenix | 2009 | 22,200 | Time Charter | Ammonia | September 2024 |
| Navigator Scorpio | 2009 | 20,750 | Time Charter | LPG | January 2024 |
| Navigator Taurus | 2009 | 20,750 | Time Charter | Ammonia | January 2024 |
| Navigator Virgo | 2009 | 20,750 | Time Charter | Butane | April 2024 |
| Navigator Leo | 2011 | 20,600 | Time Charter | LPG | December 2023 |
| Navigator Libra | 2012 | 20,600 | Time Charter | LPG | December 2023 |
| Atlantic Gas | 2014 | 22,000 | Time Charter | LPG | February 2024 |
| Adriatic Gas | 2015 | 22,000 | Time Charter | LPG | November 2024 |
| Balearic Gas | 2015 | 22,000 | Time Charter | LPG | December 2023 |
| Celtic Gas | 2015 | 22,000 | Spot Market | Butadiene | — |
| Navigator Centauri | 2015 | 21,000 | Time Charter | LPG | May 2024 |
| Navigator Ceres | 2015 | 21,000 | Time Charter | LPG | June 2024 |
| Navigator Ceto | 2016 | 21,000 | Time Charter | LPG | May 2024 |
| Navigator Copernico | 2016 | 21,000 | Time Charter | LPG | May 2024 |
| Bering Gas | 2016 | 22,000 | Spot Market | Butadiene | — |
| Navigator Luga | 2017 | 22,000 | Time Charter | LPG | July 2024 |
| Navigator Yauza | 2017 | 22,000 | Time Charter | LPG | July 2024 |
| Arctic Gas | 2017 | 22,000 | Spot Market | Butadiene | — |
| Pacific Gas | 2017 | 22,000 | Time Charter | LPG | May 2024 |
| Semi-refrigerated smaller size | |||||
| Happy Falcon** | 2002 | 3,770 | Unigas Pool | — | |
| Fully-refrigerated | |||||
| Navigator Glory | 2010 | 22,500 | Time Charter | Ammonia | June 2025 |
| Navigator Grace | 2010 | 22,500 | Time Charter | Ammonia | January 2025 |
| Navigator Galaxy | 2011 | 22,500 | Time Charter | Ammonia | December 2024 |
| Navigator Genesis | 2011 | 22,500 | Time Charter | Ammonia | January 2025 |
| Navigator Global | 2011 | 22,500 | Spot Market | — | — |
| Navigator Gusto | 2011 | 22,500 | Time Charter | Ammonia | March 2024 |
| Navigator Jorf | 2017 | 38,000 | Time Charter | Ammonia | August 2027 |
* denotes our owned vessels that operate within the Luna Pool
** denotes our owned vessels that operate within the independently managed Unigas Pool
Condensed Consolidated Balance Sheets
(Unaudited)
| December 31, 2022 | September 30, 2023 | |||||
| (in thousands, except share data) | ||||||
| Assets | ||||||
| Current Assets | ||||||
| Cash, cash equivalents and restricted cash | $ | 153,194 | $ | 178,666 | ||
| Accounts receivable, net of allowance for credit losses | $ | 18,245 | $ | 17,079 | ||
| Accrued income | $ | 9,367 | $ | 12,029 | ||
| Prepaid expenses and other current assets | $ | 21,152 | $ | 24,721 | ||
| Bunkers and lubricant oils | $ | 8,548 | $ | 12,473 | ||
| Insurance receivable | $ | 1,452 | $ | 1,833 | ||
| Amounts due from related parties | $ | 16,363 | $ | 30,905 | ||
| Total current assets | $ | 228,321 | $ | 277,706 | ||
| Non-current Assets | ||||||
| Vessels, net | $ | 1,692,494 | $ | 1,782,245 | ||
| Property, plant and equipment, net | $ | 198 | $ | 56 | ||
| Intangible assets, net of accumulated amortization | $ | 239 | $ | 240 | ||
| Equity method investments | $ | 148,534 | $ | 156,818 | ||
| Derivative assets | $ | 21,955 | $ | 19,928 | ||
| Right-of-use asset for operating leases | $ | 3,625 | $ | 3,009 | ||
| Prepaid expenses and other non-current assets | $ | 1,372 | $ | — | ||
| Total non-current assets | $ | 1,868,417 | $ | 1,962,296 | ||
| Total Assets | $ | 2,096,738 | $ | 2,240,002 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current Liabilities | ||||||
| Current portion of secured term loan facilities, net of deferred financing costs | $ | 99,009 | $ | 120,006 | ||
| Current portion of operating lease liabilities | $ | 219 | $ | 278 | ||
| Accounts payable | $ | 7,773 | $ | 9,527 | ||
| Accrued expenses and other liabilities | $ | 24,708 | $ | 18,396 | ||
| Accrued interest | $ | 4,211 | $ | 2,575 | ||
| Deferred income | $ | 23,108 | $ | 25,745 | ||
| Amounts due to related parties | $ | 595 | $ | 591 | ||
| Total current liabilities | $ | 159,623 | $ | 177,118 | ||
| Non-current Liabilities | ||||||
| Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs | $ | 608,338 | $ | 700,318 | ||
| Senior unsecured bond, net of deferred financing costs | $ | 98,943 | $ | 90,238 | ||
| Operating lease liabilities, net of current portion | $ | 4,032 | $ | 3,994 | ||
| Deferred tax liabilities | $ | 4,250 | $ | 6,970 | ||
| Amounts due to related parties | $ | 48,140 | $ | 42,985 | ||
| Total non-current liabilities | $ | 763,703 | $ | 844,505 | ||
| Total Liabilities | $ | 923,326 | $ | 1,021,623 | ||
| Commitments and Contingencies | ||||||
| Stockholders’ Equity | ||||||
| Common stock— | 769 | 734 | ||||
| Additional paid-in capital | 798,188 | 799,100 | ||||
| Accumulated other comprehensive loss | (463 | ) | (103 | ) | ||
| Retained earnings | 364,000 | 377,237 | ||||
| Total Navigator Holdings Ltd. Stockholders’ Equity | 1,162,494 | 1,176,968 | ||||
| Non-controlling interest | 10,918 | 41,411 | ||||
| Total equity | 1,173,412 | 1,218,379 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 2,096,738 | $ | 2,240,002 | ||
Condensed Consolidated Statements of Operations
(Unaudited)
| Three months ended September 30, (in thousands except share and per share data) | ||||||
| 2022 | 2023 | |||||
| Revenues | ||||||
| Operating revenues | $ | 93,960 | $ | 125,541 | ||
| Operating revenues – Unigas Pool | 9,615 | 12,227 | ||||
| Operating revenues – Luna Pool collaborative arrangements | 3,238 | — | ||||
| Total operating revenue | 106,813 | 137,768 | ||||
| Expenses | ||||||
| Brokerage commission | 1,430 | 1,788 | ||||
| Voyage expenses | 20,208 | 20,561 | ||||
| Voyage expenses – Luna Pool collaborative arrangements | 3,643 | 19 | ||||
| Vessel operating expenses | 38,663 | 39,565 | ||||
| Depreciation and amortization | 32,842 | 32,353 | ||||
| General and administrative costs | 6,137 | 7,357 | ||||
| Profit from sale of vessel | — | — | ||||
| Other income | (60 | ) | — | |||
| Total operating expenses | $ | 102,863 | $ | 101,643 | ||
| Operating Income | $ | 3,950 | $ | 36,125 | ||
| Other income/(expense) | ||||||
| Foreign currency exchange gain on senior secured bond | 5,117 | — | ||||
| Unrealized gain / (loss) on non-designated derivative instruments | 2,541 | (972 | ) | |||
| Write off of deferred financing costs | — | — | ||||
| Interest expense | (13,166 | ) | (18,189 | ) | ||
| Interest income | 170 | 1,768 | ||||
| (Loss) / Income before taxes and share of result of equity method investments | $ | (1,388 | ) | $ | 18,732 | |
| Income taxes | (426 | ) | (1,120 | ) | ||
| Share of result of equity method investments | 4,673 | 3,771 | ||||
| Net Income | $ | 2,859 | $ | 21,383 | ||
| Net income attributable to non-controlling interest | (414 | ) | (2,270 | ) | ||
| Net Income attributable to stockholders' of Navigator Holdings Ltd. | $ | 2,445 | $ | 19,113 | ||
| Earnings per share attributable to stockholders of Navigator Holdings Ltd.: | ||||||
| Dividend Paid | $ | — | $ | 0.05 | ||
| Basic: | $ | 0.03 | $ | 0.26 | ||
| Diluted: | $ | 0.03 | $ | 0.26 | ||
| Weighted average number of shares outstanding: | ||||||
| Basic: | 77,264,139 | 73,449,619 | ||||
| Diluted: | 77,574,995 | 74,032,887 | ||||
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Nine months ended September 30, 2022 | Nine months ended September 30, 2023 | |||||
| (in thousands) | ||||||
| Cash flows from operating activities | ||||||
| Net income | $ | 44,623 | $ | 67,728 | ||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||
| Unrealized (gains)/losses on non-designated derivative instruments | (12,437 | ) | 2,028 | |||
| Depreciation and amortization | 95,661 | 96,374 | ||||
| Payment of drydocking costs | (11,466 | ) | (9,842 | ) | ||
| Amortization of share-based compensation | 670 | 912 | ||||
| Amortization of deferred financing costs | 2,992 | 3,074 | ||||
| Share of result of equity method investments | (17,933 | ) | (15,067 | ) | ||
| Profit from sale of vessel | (358 | ) | (4,941 | ) | ||
| Unrealized foreign exchange gain on senior secured bonds | (12,558 | ) | — | |||
| Other unrealized foreign exchange (loss) | (2,450 | ) | (232 | ) | ||
| Changes in operating assets and liabilities | ||||||
| Accounts receivable | 9,788 | 1,166 | ||||
| Insurance claim receivable | (2,229 | ) | (2,212 | ) | ||
| Bunkers and lubricant oils | 322 | (3,925 | ) | |||
| Accrued income and prepaid expenses and other current assets | (7,283 | ) | (4,245 | ) | ||
| Accounts payable, accrued interest, accrued expenses and other liabilities | (979 | ) | (744 | ) | ||
| Amounts due to related parties | 5,157 | (14,542 | ) | |||
| Net cash provided by operating activities | 91,520 | 115,532 | ||||
| Cash flows from investing activities | ||||||
| Additions to vessels and equipment | (2,793 | ) | (191,727 | ) | ||
| Contributions to equity method investments | — | (18,036 | ) | |||
| Distributions from equity method investments | 20,562 | 24,819 | ||||
| Purchase of other property, plant and equipment | (36 | ) | (185 | ) | ||
| Net proceeds from sale of vessels | 26,449 | 20,720 | ||||
| Insurance recoveries | 6,013 | 1,832 | ||||
| Net cash provided by/(used in) investing activities | 50,195 | (162,577 | ) | |||
| Cash flows from financing activities | ||||||
| Proceeds from secured term loan facilities | — | 323,561 | ||||
| Issuance costs of secured term loan facilities | — | (3,548 | ) | |||
| Repurchase of share capital | — | (47,634 | ) | |||
| Dividend paid | — | (3,670 | ) | |||
| Purchase of senior unsecured bonds | — | (9,047 | ) | |||
| Repayment of vessel financing to related parties | (4,770 | ) | (5,155 | ) | ||
| Repayment of secured term loan facilities and revolving credit facilities | (106,078 | ) | (209,530 | ) | ||
| Cash received from non-controlling interest | — | 27,266 | ||||
| Net cash (used in)/provided by financing activities | (110,848 | ) | 72,243 | |||
| Effect of exchange rate changes on cash, cash equivalent and restricted cash | 2,007 | 274 | ||||
| Net increase in cash, cash equivalents and restricted cash | 32,874 | 25,472 | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 124,223 | 153,194 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 157,097 | $ | 178,666 | ||
| Supplemental Information | ||||||
| Total interest paid during the period, net of amounts capitalized | $ | 33,820 | $ | 41,109 | ||
| Total tax paid during the period | $ | 1,420 | $ | 1,244 | ||
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast. In addition, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate as described in this press release. In some cases, you can identify the forward-looking statements by the use of words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue,” “scheduled,” or the negative of these terms or other comparable terminology. Forward-looking statements appear in a number of places in this press release. These risks and uncertainties include but are not limited to:
future operating or financial results;
- potential acquisitions, and joint ventures, business strategy and expected capital spending;
- operating expenses, availability of crew, number of off-hire days, drydocking requirements and insurance costs;
- fluctuations in currencies and interest rates;
- general market conditions and shipping market trends, including charter rates and factors affecting vessel supply and demand;
- our ability to continue to comply with all our debt covenants;
- our financial condition and liquidity, including our ability to refinance our indebtedness as it matures or obtain additional financing in the future to fund capital expenditures, acquisitions and other corporate activities;
- estimated future capital expenditures needed to preserve our capital base;
- our expectations about the availability of vessels to purchase, or the useful lives of our vessels;
- our continued ability to enter into long-term, fixed-rate time charters with our customers;
- our vessels engaging in ship to ship transfers of liquified petroleum gas (“LPG”) or petrochemical cargoes which may ultimately be discharged in sanctioned areas or to sanctioned individuals without our knowledge;
- the impact of the Russian invasion of Ukraine and economic sanctions related thereto;
- the conflict between Israel and Hamas in the Gaza region and other geopolitical tensions;
- our ability to employ and retain suitably experienced commercial and technical staff;
- changes in governmental rules and regulations or actions taken by regulatory authorities;
- global epidemics or other health crises such as the outbreak of COVID-19, including its impact on our business;
- potential liability from future litigation;
- our expectations relating to share repurchases and the payment of dividends;
- our ability to maintain appropriate internal control over financial reporting and, our disclosure controls and procedures;
- failure of a key information technology system or process or exposure to fraud, security breaches or cyber attacks;
- the impact of cyber crime and changing financial fraud environment.
- our expectations regarding the financial success of the Ethylene Export Terminal (as defined below) and our related Export Terminal Joint Venture (as defined below) and our expectations regarding the completion of construction, and the financial success of the Terminal Expansion Project (as defined below);
- our expectations regarding the financial success of our Luna Pool collaborative arrangement and our Navigator Greater Bay Joint Venture (as defined below); and
- other factors detailed from time to time in other periodic reports we file with the Securities and Exchange Commission.
All forward-looking statements included in this press release are made only as of the date of this press release. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. We expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common stock.
Category: Financial
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